Chinese Ambassador to the Maldives Zhang Lizhong have said that after all projects are completed, the total debt that China provides to Maldives will be 1.5 billion dollars, none of it was given as cash to the government.
Speaking to Miadhu News, the Chinese Ambassador said that China arranged more than 650 million dollars as preferential loans and around 550 million has been used. He said that those loans were provided at an interest rate of 2 percent.
The ambassador said that, in addition government companies were provided with concessional loans of 870 million dollars and around 410 million has been issued with an interest rate of 3.5 percent. “China arranges loans in a way that the Chinese banks will pay for the expenses for work done. So, the government will not get any money. Chinese companies will get it. Loans were given with a grace period of 5 years and have to be returned within 20 years said the ambassador.
On Saturday, a Chinese researcher stated that China does not assist to achieve a political agenda but for economic and social development of Maldives.
Hu Zhiyong, a research fellow at Shanghai Academy of Social Sciences stated that the government of China facilitated 1.5 billion dollars to Maldives and the loans were used to conduct projects that were economically and socially beneficial for the nation. Hu stated that these projects were conducted under Belt and Road Initiative of China.
“Indian PM Modi says that India will assist Maldives economically. Just wait and see whether India does not act in a way which will result in economic independence of Maldives. At the end, Maldives will become economically dependent on India” said Hu.
